MAYBAKER reported a decline in its top-line of 9.57% to NGN5.92bn (vs. NGN6.54bn in 9M:2018). The pharmaceutical unit (which contributes c.98% to total revenue) recorded a revenue of NGN5.86bn in 9M:2019, 6.95% lower than in 9M:2018. The decline is attributed to the industry-wide reduction in prices of Over-The-Counter (OTC) products, in light of constrained purchasing power of consumers and intense competition. The beverage unit however, recorded some level of resilience, inching upwards by 9.18%, to print at NGN57mn. In the absence of new products development (or commercialization of NIPRISAN), the decline in revenue is expected to linger in the near term. Against this backdrop, we have revised our 2019FY revenue projection downward to NGN8.17bn, implying a revenue contraction of 4.52%. Kindly find attached the full report.
Earnings Update- MAYBAKER: 9M 2019.
MAYBAKER reported a decline in its top-line of 9.57% to NGN5.92bn (vs. NGN6.54bn in 9M:2018). The pharmaceutical unit (which contributes c.98% to total revenue) recorded a revenue of NGN5.86bn in 9M:2019, 6.95% lower than in 9M:2018. The decline is attributed to the industry-wide reduction in prices of Over-The-Counter (OTC) products, in light of constrained purchasing power of consumers and intense competition. The beverage unit however, recorded some level of resilience, inching upwards by 9.18%, to print at NGN57mn. In the absence of new products development (or commercialization of NIPRISAN), the decline in revenue is expected to linger in the near term. Against this backdrop, we have revised our 2019FY revenue projection downward to NGN8.17bn, implying a revenue contraction of 4.52%. Kindly find attached the full report.